What's next for TerraForm Labs and Luna?
Good morning Lions I trust you are safe and well and enjoyed my new introduction sound, thought it added to the overall experience.
It has been an interesting week with the broader crypto market showing signs of recovery once again leaving disenfranchised people off side. Many expected Crypto to end but as we have come to learn there is more institutional investers than we would like currently playing in the Decentralised Finance world, but more on that soon.
There are currently discussions on forking the network and taking a snapshot of people prior to the May 6th attack and despite sounding like the Wolf of Wall Street "I will not leave" Do Kwon has conceded that future UST will be collateralised. This will no doubt also see UST growing a lot slower or atleast appearing in liquidity pools alot slower.
Kwon has to do something
The issue Do Kwon faces is that TerraForm Labs is a registered company in South Korea and more recently in Singapore which have some of the strictest punishments for financial crimes. If Do Kwon doesn't rebuild and make good on his investors than chances are he is going to need to leave the country real quick or face some heavy penalities.
The question on everyones mind is, who will get what?
Institutional investors Beyond Luna
The events that unfolded are not illegal (yet) because crypto is unregulated but if mainstream firms pulled that on a exchange they'd need to be on the next flight to Panama or risk heavy penalites or jail.
The question needs to be asked, should the sector be regulated against such behaviour as the Billion or so dumped caused hundreds of thousands to lose money and a company to collapse. Noting that the full responsibility lays with Do Kwon as it is his company and he should have had fail safes in place to freeze the network or prevent such attacks.
Do Kwon's Safety at risk
Reports are circulating that Do Kwon's personal safety has been put at risk with someone breaking into his home which is a frighening debacle to be in. Understandably alot of people have lost alot of money but these are the risks when we play in this market. Not to sound dismissive as I also lost alot of money which was going towards my own project, furniture for the home I am building and a short holiday.
But my thoughts are with not only the investors but the developers on Luna as over the past six to twelve months I have personally met and shared articles about the teams behind the scenes developing and pouring their hear and soul into what they see is the future.
You can not help but feel for them as they have seen their projects and their jobs destroyed and reports are going around that people are self harming. Please, I would urge anyone in this situation to reach out and speak with someone. If you need to please feel free to DM on Twitter or Discord I would be more than happy to talk with you through this rough period of time.
The dangers of Crypto
Furthermore, Luna's collapse is one for the history books and the first big enough collapse the be felt right across the broader crypto markets. Even if Do Kwon can rebuild Terra (Luna) Network it is going to be some time before people retrust the protocol but this being Crypto we have seen others return from collapse so anything is possible.
What are your thoughts? do you think Luna will make a comeback or is it dead in the water?
This is not financial advice and readers are advised to undertake their own research or seek professional financial services
▶️ 3Speak
For my part, I don't really know a lot about Crypto and networks - learning HIVE is basically where I'm at, but I threw 50 AUD at LUNA this morning (300,000 LUNA). Felt like it is like buying a lottery ticket, I might win big, I might lose, I might get my money back. In my head I thought, even if it only gets back to 2 bucks, that'd be enough to knock the mortgage over - as optimistic as that might be, it'd be a good return on 50 bucks.
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You should have told me, I would have given you some for FREE. It is dead in the water. They will be forking and creating a new coin. You probably wasted cash.
That $50 would have turned into $100 if it was Hive. I think (not financial advice) once we are out of this dip Hive will go back to $AUD1.20
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OK - I'll go with your advice. So that 50 bucks purchased me 300,000 LUNA coins this morning around 8.30. Price has nearly tripled since, just logged into Binance and sold 120,000 LUNA - got my 50 bucks back.
Will keep the 180,000 other LUNA as a free carry for now, and see what price action happens in the next day or so. (Why do you say dead in the water; what would stop it from popping again?)
The creators statement that the project is not going a head and they are creating a new token.
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Morning Melbournewest - well, as of this morning, I'm out of LUNA. Was a 20 hour ride for 3.5x profit. Probably the best investment I'll ever make (just wish I sold the rest just before bed when it was 6x purchase price). Anyhows - will turn it into HIVE later today, got a few things to use it for!
Man, though times for so many, makes the market down trend not quite as painful
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Yup, but hurts for everyone.
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Wow sorry to hear he may go to jail, and his personal safety is at risk.
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A lot of people lost money.
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Im having all dots of thoughts here.
Firstly, it always seems entertaining to see the crypto world go crazy until you remember that peoples livelihoods and lives are being terribly hurt.
Secondly I clicked on the link about the break in… someone just basically went to his house - hope it’s paid in full!
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Indeed, it's people's lives that are often on the line and their savings
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I think it depends but I don't think LUNA will succeed and Do Kwon hasn't mentioned how he would prevent this from happening again. So I think it's far too risky.
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It will be a rough go to get this project new legs... but if they can fork and give it a second chance with new safeguards in place, people may stick with it. I was holding a small amount of LUNA on osmosis (locked for 14 days)... so I watched my modest position turn into nothing in a matter of a day. If I got new Luna in that pool, I would keep it there. So... there is hope that others would do the same.
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I think alot would keep and alot would dump it also depends on the Liquidity and what's left. There might not be any Liquidity left.
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A few days ago I bought some Luna. This is first time I buy this token. Today I spoken about it. But now that I hear the stories of people and their livelihoods. It is a terrible situation. All I lost is money !
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Yup, its very sad.
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I wonder why a lot of people intentionally (or unintentionally) ignore the first rule of crypto: Dont invest more than you can afford to lose.
Everyone says it. Why do they always miss it???
It's a sad situation but it's crypto. Thankfully there are the regulations in South Korea and Singapore that keep him accountable so we can use that to believe it's not all over yet.
I believe in due time, people will trust the system again. Crypto can be a bit forgiving. I believe. They may not reach their former glory quickly but some people will believe and invest and coz of this they'll try twice as hard to ensure that these things never happen again.
Hopefully, they've figured out where they got it wrong.
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Yup, there is still quite a few billion dollars in the kitty so they have the funds to start again.
From what it appears, they're not using an algorithmic pegged stable coin but a colatorised one.
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I just read a post where someone described Luna as a Ponzi. He had a few valid points. Does that scare you?
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Being that they are stains on the crypto space I hope jail...
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